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larisa [96]
3 years ago
11

If the price level increases by 0.2 percent for every $100 billion increase in the money supply, by how much might prices rise i

f the Fed increases total reserves by $150 billion and the reserve requirement is 0.1?
Business
1 answer:
Gala2k [10]3 years ago
8 0

Answer:

3%

Explanation:

Increase in money supply ($ billion) = Increase in reserves / Reserve ratio

Increase in money supply ($ billion) = 150 / 0.1

Increase in money supply ($ billion) = 1,500

Increase in price level = (Increase in money supply / 100) * 0.2

Increase in price level = (1,500/100) * 0.2

Increase in price level = 3%

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Marginal revenue for the perfectly competitive seller is constant and <u>equal to</u> the price, whereas for the monopolist it is not constant and reflects the necessity of <u>lowering </u>the price to sell the output.

A monopoly, as defined with the aid of Irving Fisher, is a market with the "absence of opposition", developing a situation in which a specific person or organization is the only supplier of a particular component. Natural gas, strength companies, and different application businesses are examples of natural monopolies. They exist as monopolies due to the fact the value to go into the enterprise is excessive and new entrants are unable to provide identical offerings at lower fees and in portions comparable to the present company.

A monopoly is when one organization and its product dominate an entire enterprise wherein there is little to no competition and customers need to purchase that particular excellent or service from one organization.

A monopolist is a man or woman, group, or agency that controls the market for a particular desire or provider. A monopolist likely also believes in regulations that prefer monopolies since it offers them extra power. A monopolist has little incentive to improve its product because clients have no options.

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4 0
1 year ago
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Nata [24]

Answer:

Breaking down barriers between functions

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8 0
3 years ago
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d1i1m1o1n [39]

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<u>climate for service.</u>

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Flow production would be my guess
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